Petroleum Fiscal Modelling and Economic Analysis Training
From $5250 per attendee
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London
25 November, 2024 - 29 November, 2024
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10 March, 2025 - 14 March, 2025
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2 June, 2025 - 6 June, 2025
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Course Information
- Course Content
- Course Description
- Course Objectives
- Who Should Attend
- CPD Unit
Course Content
Day 1
- Petroleum fiscal systems – concept, historical developments, and current dynamics.
- Concessionary systems – concept, issues and production valuation and profitability modelling in concessionary fiscal systems
- Production sharing contracts – Concept, terminology and issues, modelling and deriving key economic decision metrics for the Host Government and contractor, cost recovery modelling and production valuation
- Depreciation, Depletion and Amortization of oil company investments and capital expenditures – concept and techniques
Day 2
- Oil company cashflows – Cash Flow Analysis, exploration and production company cash flow value drivers, modelling contractor cashflows in PSCs, concessionaire cash flow modelling in Royalty-Tax regimes, Economic limit tests and field development, Losses Carry Forward, Income Tax in PSC and concessions
Day 3
- Final Investment Decision (FID) indicators/ variables – present value theory and discounted cash flows (DCF’s), internal rate of return, effect of project delay, payback period, profitability index, modelling the effects of capital allowance
Day 4
- Risks and Uncertainties Risk – Technical risks and cash flows, Expected Value Concept – Payoff Tables and Decision Tree Analysis, Oil and Gas Acreage Acquisition Decision Analysis, Probability based Sensitivity Analysis, Value of information·
Day 5
- Setting up Spreadsheet Calculation Introduction to Spreadsheet Calculation Simple Cash Flow of PSC Using Excel
- Setting up Oil Field Development Model Setting up an Integrated PSC Economic Model of a Typical Oil Field Development Project including Sensitivity Analysis
- Build a production sharing contract spreadsheet model using MS Excel, derive relevant decision output variables and draw conclusions to aid economic decision-making
Course Description
Petroleum Fiscal Modelling and Economic Analysis Training Course
This course introduces participants to the various and currently practiced petroleum fiscal systems and their valuation techniques. Delegates are also given practical guidance on the valuation of the different contracts and economic analysis of oil and gas development projects (within these fiscal environments) with special emphasis on Royalty-Tax systems and Production Sharing Contract PSC’s. The course also introduces participants to the concept and techniques of uncertainty and risk analysis as they apply to oil and gas development investment decisions.
Course Objectives
Participants will gain the understanding of, and acquire the skills of evaluating upstream petroleum assets, including the derivation of economic decision indicators and risk analysis to aid economic decisions.
Core Competencies
- Apply tools for analysing risk and uncertainties.
- Participants will be able to prepare cash flow analysis including the determination of economic indicators
- Quantifying and characterise risk and uncertainty through decision analysis and sensitivity analysis.
- Participants will be able to determine recoverable reserves using deterministic models.
- Participants will understand the role of PSC petroleum economics in evaluating reservoir development project and minimizing risk.
Who Should Attend
This course is recommended for junior, middle-level and senior employees of upstream oil and gas companies. Geologists, Accountants, Engineers, Economists, Technicians who wish to acquire an understanding of the fiscal regimes of upstream petroleum operations and learn how to perform economic evaluation of oil and gas development projects will also benefit a great deal from this course. Graduates who wish to take up an entry level petroleum economist or fiscal modeler job in the oil and gas industry will benefit from the course
CPD Unit
Continuing Professional Development
35 HOURS CPD